DEVELOPER'S S. LOOP PLANS HIT BRICK WALL

Lofts are popping up all over the South Loop, but one developer recently learned that building in a landmark district might be more trouble than it's worth.

D2 Realty Cos.' plans for a 17-story building at 636 S. Dearborn St. have been hobbled by a well-organized cadre of neighborhood groups with motives both high-minded (architectural harmony) and self-centered ("Don't block my great southern view").

"Any developer who now comes here will find they can expect delays and higher costs if they don't work with the community first," says Michael Kelley, a Printers Row resident who led the charge against D2's project.

It was supposed to be a sure-fire money-maker for Chicago-based D2: 36 units would sell for $150,000 to $350,000, with parking, balconies and views on three sides overlooking a park and Dearborn Station. Plans called for bookstores and restaurants.

But the fourth side of the project abuts the Transportation Building condo development at 600 S. Dearborn, whose residents didn't appreciate their southern exposure turning into a close-up of a brick wall.

In May, miffed area residents including Mr. Kelley formed Historic Printers Row Neighbors to battle the proposed project.

Their efforts might have amounted to little more than bluster had it not been for the neighborhood's designation as a landmark, giving the city's Commission on Landmarks authority over any new construction.

The commission's review process gave neighbors a forum to air complaints that the building is too tall, the balconies out of tune with the area, the parking an eyesore and plans to use brick-shaped panels (not actual bricks) unfit for a historic district.

Citing neighborhood discontent, the commission delayed approving the plan to June, then to August, at 2nd Ward Alderman Madeline Haithcock's request, and then again to September.

At each meeting, features of the project fell victim to the commission's architectural eraser.

"Everyone made a lot of noise about 'architectural integrity,'" says David Kleiman, a principal at D2. "But that is not what this fight is about. The key is height."

Not all Printers Row neighbors were opposed to the project.

Dennis McClendon, a former president of the South Loop Neighbors Assn., says, "The whole thing is a tempest in a teapot, brewed primarily by people whose own precious views would be blocked. And that's an awfully parochial view."

The Near South Planning Board endorsed the project.

Says President Barbara Lynne: "The Transportation Building has 294 units. Arguing density about 36 units is a little ridiculous."

Despite the objections, the commission agreed on Sept. 2 to D2's amended plans for a 17-story building. D2 plans to start construction, but Mr. Kleiman says delays and rising costs have forced D2 to consider alternatives. One possibility: a four- or even one-story project, if neighborhood groups would be willing to pay $300,000 for "air rights" above the site.